LONDON (Alliance News) - An agreement has been reached among Pan Andean Resources, the Ghana National Petroleum Corp and the government of Ghana on the specific revised co-ordinates of the signed petroleum agreement for the Tano area of Ghana, it was disclosed on Monday.
Pan Andean Resources is 60% owned by Clontarf Energy PLC, 30% by Petrel Resources PLC, and 10% by local interests, and the news was noted Monday by Clontarf and Petrel in separate statements to the London Stock Exchange.
Both companies said the solution is satisfactory and brings their interests in acreage closer to existing discoveries.
In July, Clontarf and Petrel said they had secured a deal meaning they would be provided new land next to their current acreage to replace lost land when a rival rights grant to CAMAC Energy Inc overlapped their own licence.
"All parties have committed themselves to, and are acting to complete, the ratification process in accordance with law, which requires cabinet and parliamentary approval," the companies said.
"Accordingly, Pan Andean Resources Ltd has not reapplied to the High Court for further equitable relief but retains its right to reapply should it prove necessary," they added.
Andrew McGeary of Northland Capital Partners, the companies' nominated advisor, said: "The potential ratification of the revised Ghana permit would be a major boost to both companies following several years' endeavours."
"Having last month cited that authorities had been slow to finalise details, it is encouraging that Pan Andean views current progress as sufficient so as to not require further legal action. Restoration of the Ghana licence, once ratification has occurred, will have a material positive impact for both companies. For Petrel, it is an important licence not included in our current valuation. For Clontarf Energy it is the main asset," McGeary wrote in a research note to institutional investors and market professionals.
Clontarf shares were Monday untraded at 0.95 pence, while Petrel shares were quoted up 2.3% at 6.65 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Petrel Resources (PET)
Clontarf (CLON)